Embracing the Future: How Bitcoin and AI Could Revolutionize Our Economy

I’ve been working on very big projects through my entire career for retail giants worldwide. It’s from this frontline perspective that I’ve witnessed the absurdity of our current inflationary monetary system firsthand, a system that often negates the hard-won efficiencies we achieve—at least for you and me, the final customers. Today, I want to explore how the convergence of Bitcoin and Artificial Intelligence (AI) could be the game-changer we desperately need.

The Inherent Deflation of Technology

Throughout my career, I’ve witnessed the transformative impact of technological innovations in reducing costs and enhancing efficiency. Each new gadget, software, or automated process we’ve introduced has been strategically aimed at lowering operational costs to enhance competitiveness. Consequently, this results in lower prices for goods for the final customer. The deflationary nature of technology should ideally make life more affordable, reflecting competition through decreased consumer prices.

However, the reality is that despite these technological advancements, the prices for everyday goods continue to rise. This paradox stems from the inflationary nature of our fiat currency system, where money printing dilutes the value of money, thereby driving prices up and obscuring the real benefits of technological innovations.

Why AI Scares Everyone

People are not just scared that AI will take away jobs; they're worried it might mess up the economy even more. We're afraid that even if AI makes us more productive, it won't lead to lower prices or more financial freedom. Instead, we worry about losing more jobs and facing higher prices because of the constant increase in prices that needs to happen with regular money. This fear comes from problems in our economic system, not from what AI can do, yet people are still incorrectly pointing to AI as the cause.

Bitcoin: The Pathway to Lower Prices

Enter Bitcoin. With its fixed amount and decentralized setup, Bitcoin brings a big change towards an economy where prices could go down instead of up. It matches well with how technology can make things cheaper. In this system, when we get more done with less thanks to AI, the prices could really drop. Imagine a world where the money you save thanks to technology actually shows up as lower prices when you shop. This isn't just wishful thinking—it's a new economic reality that Bitcoin could make possible.

To illustrate how Bitcoin can reflect true economic changes, let’s look at the housing market. Below is a table comparing U.S. housing prices in both dollars and Bitcoin over the years:

Similarly, let’s examine the price of eggs and cars over the years, highlighting how these items have become more expensive in dollar terms but cheaper in Bitcoin:

Dozen of eggs price in US dollars vs Bitcoin

The Nightmare of AI and Fiat

If we keep using traditional money and ignore the potential of Bitcoin, the future looks dark. With advancements in technology, especially with AI, we might see big benefits only going to a few people. This could lead to higher costs and fewer jobs for everyone else. It's a grim picture where technology, instead of helping everyone equally, could end up making economic inequality worse. Ignoring Bitcoin might mean missing a chance to spread wealth more fairly.

AI and Bitcoin: A Vision of Hope

Contrast that with a world where AI and Bitcoin work together. Here, AI boosts productivity through automation and process optimization, improving efficiency across various industries. Meanwhile, Bitcoin helps ensure that the economic benefits from these advancements are broadly shared. By leveraging the decentralized nature of Bitcoin, economic power could be distributed more widely, potentially lowering prices and enhancing access to wealth.

In this vision, technology acts as a liberator, promoting a future where benefits are more evenly spread throughout society. This could create a more balanced economic environment, where everyone has a better chance to prosper thanks to the shared gains from technological progress.

Conclusion

As someone who has spent a lifetime battling economic inefficiency, I find it perplexing—from an engineering perspective—how we attempt to measure value with a unit that constantly changes. This is why integrating Bitcoin and AI seems not just beneficial, but essential. This combination could disrupt the endless cycle of inflation and economic concentration, leading us toward a fairer, more equitable world. It’s crucial that we educate ourselves and others about Bitcoin to fully leverage the potential that AI offers.